Startup Funding Espresso – Different Paths of Commercialization

Different Paths of Commercialization

Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

There are different paths of commercialization.

These paths include startups and licensing.

Founders license the technology from the source and then establish a company to create a product to sell for a profit.

The startup requires a team to build, sell, and support the product.

The startup typically needs to raise funding from grants and later private investors to fund the early stages of the business.

There must be a market for the product and the company must be able to sell it in order to succeed.

Licensing takes the technology and packages it into a format that can be implemented into other products by third parties.

The user pays a royalty to the owner of the technology for its use.

Licensing requires the intellectual property to have awarded patents but can also include trade secrets.

A licensing agreement defines the scope of the license, as well as the financial and legal conditions.

The advantage of licensing is that it typically does not require funding to build and sell the technology.

The disadvantage is that it captures less revenue than a startup would.

Consider these paths for your technology.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today.

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